Corporate regulator the Australian Securities and Investments Commission (ASIC) has dropped its investigation into Perth-based miner Mineral Resources Ltd. and its billionaire founder, Chris Ellison, confirming it will take no enforcement action or impose financial penalties.
The decision brings an end to months of intense scrutiny for the iron ore and lithium miner following allegations of tax evasion and severe corporate governance failures.
The watchdog’s probe focused on undisclosed offshore entities operated by Ellison in the early 2000s, including a company registered in the British Virgin Islands.
That supplier sold nearly AU$4 million worth of equipment to MinRes without the managing director disclosing his financial interest in the transaction.
Ellison stepped down as managing director in April 2025.
Addressing shareholders amidst the fallout, a remorseful Ellison described the corporate governance scandal as a “dark cloud” over his life.
“I acknowledge that I made mistakes, some of which were driven by my wish to keep private certain events that cause me great personal embarrassment,” Ellison said in the company’s statement about the scandal.
Ellison confirmed all outstanding taxes, penalties, and interest related to the undeclared revenue had been fully settled with tax authorities.
The ASIC clearance follows substantial internal disciplinary measures enacted by the Mineral Resources board late last year.
The board penalised Ellison AU$8.8 million and wiped nearly AU$10 million from his planned executive remuneration package.
An internal review also revealed company funds had been used to benefit entities tied to Ellison’s daughter without the board’s knowledge.
While the federal corporate watchdog has cleared both the mining magnate and the company, MinRes’s legal troubles are far from over.
Investors have lodged a class action suit in the Supreme Court of Victoria, seeking damages against Ellison and the company over the tax scandal and its subsequent impact to shareholder value.
